Section 179 X-Ray Equipment Deduction: 2026 Limits

Section 179 x-ray equipment deductions can let a practice write off the full cost of a qualifying imaging system in the year it goes into service, instead of depreciating it over several years. For many practice owners, that changes the math on whether to buy now or wait. The 2025 One Big Beautiful Bill Act roughly doubled the Section 179 limits, so the numbers you remember from a few years ago are out of date.

This is not tax advice. Tax rules depend on your entity type, income and state. Talk to your CPA before making a purchase decision based on a deduction.

If you are still choosing equipment, browse our x-ray products and medical x-ray systems.

Section 179 x-ray equipment limits for 2025 and 2026

According to IRS Publication 946, the limits are:

	Tax years beginning in 2025	Tax years beginning in 2026
Maximum Section 179 deduction	$2,500,000	$2,560,000
Phase-out begins when total Section 179 property placed in service exceeds	$4,000,000	$4,090,000
Deduction fully phased out at	$6,500,000	$6,650,000

The phase-out is dollar for dollar. If a business places $4,140,000 of Section 179 property in service in 2026, its maximum deduction drops by $50,000. Most medical, chiropractic, veterinary and podiatry practices buy well under the threshold, so the full limit is usually available, subject to the income limit below.

What changed in 2025

The One Big Beautiful Bill Act, signed in July 2025, made two changes that matter for equipment buyers:

Higher Section 179 limits. The maximum deduction rose to $2,500,000 with a $4,000,000 phase-out threshold for tax years beginning in 2025, and both figures are adjusted for inflation, which produced the 2026 amounts above.
100 percent bonus depreciation restored. The law reinstated the 100 percent special depreciation allowance for qualified property acquired and placed in service after January 19, 2025. Before that, bonus depreciation had been phasing down.

Does x-ray equipment qualify?

X-ray systems, DR panels, portable units and related imaging equipment are generally tangible personal property used in a business, which is the core category Section 179 covers. To qualify, property must meet IRS requirements, including:

Acquired by purchase. Property received by gift or inheritance does not qualify.
Not bought from a related person. For example, buying equipment from a family member’s business can disqualify it.
Used more than 50 percent for business in the year it is placed in service. If business use is between 50 and 100 percent, the deduction is based on the business-use share of the cost.
Placed in service during the tax year you claim it.

New and used equipment

Section 179 is not limited to new equipment. Used equipment can qualify as long as it is new to your business and meets the requirements above. That matters if you are weighing new vs. refurbished x-ray equipment. Bonus depreciation also applies to new property and certain used property.

Upgrades and retrofits

A DR flat panel retrofit on an existing system is equipment too. Ask your CPA how to treat the panel, software and installation costs on your return.

The placed-in-service rule

This is where year-end purchases go wrong. Paying for equipment in December is not enough. The IRS considers property placed in service when it is ready and available for its specific use.

For an x-ray system, that typically means delivered, installed and ready to take images. If your room needs shielding, electrical work or state paperwork before the system can be used, build that time into your schedule.

Year-end timing tips

Start in late summer or early fall. Equipment lead times, physicist reports and construction can each take weeks.
Prepare the room first. Shielding and electrical work should be finished before the equipment arrives.
Schedule installation with a buffer. Holidays, weather and parts delays can push an install past December 31.
Confirm acceptance testing. Make sure the system is tested and ready for patients, not just delivered.

Keep records that show the installation date and the date the equipment was ready for use.

The business income limit

Your Section 179 deduction cannot exceed the taxable income from your active trades or businesses for the year. Any amount you cannot deduct because of this limit can be carried forward to future years. Bonus depreciation works differently and is not subject to the same income limit, which is one reason CPAs often use the two together.

Section 179 vs. bonus depreciation

	Section 179	Bonus depreciation
How it works	Election to expense the cost, up to an annual limit	Additional first-year depreciation allowance
Annual dollar cap	$2,560,000 for 2026	No dollar cap for qualified property
Limited by business income	Yes, with carryforward	No
Used equipment	Yes, if new to you and not from a related party	Certain used property qualifies
Order applied	First	After any Section 179 deduction

A simple illustration

Suppose a practice buys an x-ray system for $150,000 and has it installed and ready for patients in November 2026. If the practice qualifies and has enough business income, it could elect to deduct the full $150,000 on its 2026 return rather than depreciating it over several years. At a hypothetical 30 percent combined tax rate, that is roughly $45,000 less tax for 2026. Your actual result depends on your entity, income, state and other deductions. Some practices also choose not to expense everything in one year, for example when they expect higher income in later years. That is a planning decision to make with your CPA. To see what systems typically cost, read how much an x-ray machine costs.

Financing, leasing and state taxes

Financing: Section 179 is not limited to cash purchases. Financed equipment can qualify when the transaction is treated as a purchase for tax purposes.
Leasing: some lease structures are treated as purchases and some are not. Have your CPA review the lease terms before you sign.
State taxes: states do not always follow federal Section 179 and bonus depreciation rules. Ask how your state treats them.

What to bring to your CPA

The quote or invoice, with equipment, software and installation listed separately
Expected delivery and installation dates
Whether the equipment is new or used, and who you are buying it from
Financing or lease documents, if any
Other equipment you expect to place in service this year

Again, this article is general information, not tax advice. Your CPA can tell you how Section 179 and bonus depreciation apply to your practice.

Plan your purchase around your timeline

If you want equipment in service before year-end, start early. Tri-State Digital Imaging can help you choose a system and plan installation for chiropractic, veterinary, podiatry and medical practices. Request a quote or call (901) 896-8989.

Frequently Asked Questions

What is the Section 179 limit for 2026?

For tax years beginning in 2026, the maximum Section 179 deduction is $2,560,000, reduced dollar for dollar once total Section 179 property placed in service exceeds $4,090,000, according to IRS Publication 946. Confirm current figures with your CPA.

Can I take Section 179 on used x-ray equipment?

Generally yes, if the equipment is new to your business, acquired by purchase from an unrelated party, and used more than 50 percent for business. Your CPA can confirm eligibility.

If I pay for an x-ray system in December, can I deduct it that year?

Only if it is placed in service that year, meaning it is ready and available for its specific use. A system that is paid for but not yet installed generally does not count for that tax year.

Is this article tax advice?

No. It is general information. Tax treatment depends on your entity type, income, state and other factors, so talk to your CPA before making a decision.

Section 179 and X-Ray Equipment: How Practices Can Deduct the Cost